The Capital Market Authority signed, Wednesday, November 30, 2022, a “Memorandum of Understanding" (“MOU") with the Saudi Organization for Chartered and Professional Accountants (“SOCPA") with the aim of laying down a mechanism of cooperation, between the two bodies, in relation to regulating the field quality control of the professional performance and execution of auditors of the entities, subject to the Authority's supervisions.
The MOU aims to set out and approve a coordination framework, between the two bodies, identifying and adopting the means of tasks' coordination, and how to execute said tasks, in addition to boosting the supervision and control on the auditors of the entities, subject to the Authority's supervisions each according to its legal specialties, and assigning the tasks of the two bodies, in addition to clarifying any mutual roles or arrangements, which shall lead to protecting the investors' best interests.
On this occasion, the CMA's Financial Statements and Auditors General Director, Sami Mohammad Alshorafa, stressed the importance of the MOU and its role in deepening the quality of control on the audit firms registered at the CMA, in a way that preserve the investors' rights and support their investment decisions through obtaining the financial statements with highest degree of disclosure and transparency.
From his side, the SOCPA's Quality of Professional Performance Executive Director, Mohammed bin Sulaiman Al-Ghaib, reported that the MOU shall support SOCPA in developing the accounting and auditing profession by elevating the profession level through reviewing, developing and approving accounting and auditing standards and helping in practicing the profession duties on field control.
It is worth to mention that the said MOU is concluded in execution for Article (6) of the Council of Ministers' Resolution No. (416), dated 25/07/1442 AH, which states that “the Saudi Organization for Chartered and Professional Accountants and the Capital Market Authority should establish a mechanism of cooperation, between the two bodies, in relation to regulating the field quality control of the professional performance and execution rendered by auditors of entities, subject to the Authority's supervisions".